Turkey’s domestic scrap prices move down sharply

The impact of the collapse observed in the deep sea scrap segment has finally been reflected in local scrap prices in Turkey this week. As anticipated by SteelOrbis last week, several Turkish mills have cut their domestic scrap procurement prices by TRY 200-900/mt, matched by a $6-25/mt downward revision of dollar-based prices given the depreciation of the Turkish lira. The downtrend is expected to continue in the coming days, as Turkish mills’ bids for deep and short sea scrap are still moving down, reflecting their lack of steel sales and reduced need for raw materials. A few Turkish mills have kept their prices stable to support incoming tonnages as they refrain from buying larger import cargoes, while their dollar-based quotations have moved down by $1/mt week on week.

As a result, the general range in the local Turkish scrap market for the benchmark DKP grade scrap has moved down from the TRY 13,200-14,200/mt range to TRY 12,450-14,200/mt. The dollar-based quotations have moved down from $347-373/mt to $326-372/mt.

All above prices are for deliveries to customer and exclude VAT. Exchange rate fluctuations are taken into consideration when calculating the dollar-based price changes.

$1 = TRY 38.18